Handbag manufacturers anticipate strong market growth but.
The big challenge for every handbag manufacturer is to adapt their product lines for the
estimated 6.8% year on year growth till 2028. This predicted growth for the global handbag market comes after the 25.6% decline in 2020 mainly caused by the pandemic. But some industry leaders are less optimistic.
Bag manufactures in China, who now face a slowdown in handbag production due to the energy crisis and governmental control measures, must anticipate for the growth in demand after the pandemic is over. There are several reasons the market for handbags will return to pre-COVID levels, like for example a survey of Consultancy firm McKinsey, that reveals
that travel is the second-most-desired activity in the U.S., after eating out. For both activities people need bags, from travel bag to cosmetic bags!
Where does the growth come from?
Next to the uprise of traveling after the pandemic and the energy crisis is managed well, a
handbag manufacturer must focus on innovations for features like removable flaps, power units, outer shells, and others. Think of a Smart Bag that comes with touch-free wireless charging. Producing handbags with zero cruelty to animals; processes and materials that don’t damage the environment; and your handbag manufacturer should be paying workers fairly and treating them well, will support to regain back some lost markets. Or even allow market participants to enter new markets.
Another very positive driver, from many points of view, behind the predicted growth of the market is the increasing participation of women in the labor force. This allows for larger spending wallets, and women empowerment at the same time.
But we must be realistic, the
2021 State of Fashion Survey from McKinsey and BOF shows 1/3 of the CEOs in the fashion industry sees the conditions in the industry in 2021 measured against 2020 as worse and another third the same. The fashion industry and this the handbag sector is not out of the woods yet.
The future growth going Digital
Handbag manufacturers must adapt to the continues change, that comes from the pandemic, the energy crisis, the climate crisis, and any other crisis that is looming around the corner. The
key principles for managing change will be flexibility and agility, alongside operational resilience a critical capability in an uncertain environment as we can read in the latest McKinsey Sate of Fashion report.
Despite all this uncertainty, Industry leaders do see a silver lining in going digital, like online sales but also a further digitalizing of the business processes and operations. Followed by
sustainability as second opportunity.
How to get out of the crisis stronger?
A strong recommendation by McKinsey to get stronger out of the current economic and supply chain crisis is to exchange the transactional relationship between supplier and manufacturers, into more deep relationships. Working together on supply chain issues, insight in true cost of production. Working together also leads to a shorter time to market, more sustainable business models with less waste and lower carbon footprint for example.
Jimbobags is ready for a deeper relationship
let’s talk, the better we understand your needs and stress points the better we can align our processes to your needs in a beneficial way. Especially when we are still in an early stage of the design and production process.
We are in this together, let us work together to find opportunities with win-win outcomes for all stakeholders
Let’s deal with this crisis, contact our sales team when you are in for a beneficial collaboration.
